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Canada Reaches Health Funding Agreement with Ontario

News Release

The federal government and the Government of Ontario agreed to new targeted federal funding over 10 years for investments in home care and mental health care.

March 10, 2017
Ottawa, Ontario
Health Canada

Canada’s public healthcare system is a source of pride. The Government of Canada and the Government of Ontario are committed to ensuring it is there to meet the needs of Canadians.

Today, the federal government and the Government of Ontario agreed to new targeted federal funding over 10 years for investments in home care and mental health care. The province joins other provincial and territorial jurisdictions in accepting the Government of Canada’s offer of investments to deliver better health care for Canadians and Ontarians in these priority areas.

Over the next 10 years, the federal government will provide Ontario with an additional $4.2 billion:

$2.3 billion for better home care including addressing critical home care infrastructure requirements; and

$1.9 billion in support of mental health initiatives.

Under this funding agreement, the province will be getting its respective share of the investment in home care and mental health outlined by the federal government at the Finance and Health Ministers’ Meeting in December 2016. The province is the latest jurisdiction to pursue a new agreement for health care funding with the federal government, which will begin in the 2017-18 fiscal year.

In the coming weeks, governments will develop performance indicators and mechanisms for annual reporting to citizens, as well as a detailed plan on how these funds will be spent, over and above existing programming. The Government of Canada and the Government of Ontario will work out the details of accountability and reporting, in accordance with a pan-Canadian approach.

As a result of these investments, it is expected that wait times for mental health services for children and youth will be improved and that the number of patients in hospital who could be supported and better cared for at home or in the community will be reduced.

The targeted investments in home care and mental health care are in addition to the existing legislated commitments through the Canada Health Transfer (CHT), which will continue to grow into the future. This new funding agreement is consistent with the federal investments offered to provincial and territorial governments in December. It would be amended to reflect legislated changes to the CHT in the event of a pan-Canadian agreement consistent with the previous federal offer.

Quotes

“This ten-year commitment will improve mental health and home care for Ontarians. As part of the Health Accord, our Government is committed to partnering with all provinces and territories to transform our healthcare systems."

The Honourable Jane Philpott
Minister of Health

"Ensuring that people in Ontario can get the care they need when and where they need it is a key component of our government’s plan to put patients first, which is why we have increased funding for home and community care and mental health and addiction services to nearly $9 billion annually. This funding from the federal government will help support these priorities.”